Impact of Carbon Emission Trading Market on Regional Urbanization: an Empirical Study Based on a Difference-In-Differences Model

Haoyuan Cheng, Xiaoqian Liu and Zhenlong Xu
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Haoyuan Cheng: Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu, China
Xiaoqian Liu: Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China
Zhenlong Xu: Kogod Business School, American University, Washington, USA

Economic Analysis Letters, 2022, vol. 1, issue 1, 15-21

Abstract: China's carbon emission trading market has been formally established, but few studies have been conducted to analyze the impact of this policy on the regional urbanization level. Therefore, this paper evaluates whether the carbon trading pilot policy can enhance the regional urbanization level in China through the difference-in-differences method and analyzes the mediating role of industrial structure upgrading in this process. The results prove that the carbon trading market policy can accelerate the transformation and upgrading of industrial structure in the region so that it promotes the development of regional urbanization. Moreover, the effects of the policy are concentratedly manifested in the eastern region of China.

Keywords: Carbon emissions trading market; Difference-in-differences method; Industrial structure; Urbanization level (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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